Vigorous imports of Coking Coal by Chinese steel makers have led to the apparent phenomenon—rise in the coal prices.
The steel makers in China are in an importing spree as they intend to resume full steel production after the Lunar Year Holidays getting over.
Offers for the Premium HCC have gone up to around USD 227.50/MT FoB Australia, up by around USD 9.95/MT over the rates in the last week. Likewise, offers for the 64 Mid Vol HCC have risen by around USD 8.5/MT on week-on-week basis to around USD 188.35/MT FoB Australia.
Source: CoalMint Research
On CFR India basis, these offers translate into: USD 240.30/MT and USD 201.15/MT respectively.
Steel makers in India also are active in importing the coal for stocking as well as using in their regular production. Demand for the coal will strengthen further in India as steel making is on the rise.
For Indian buyers, cost pressure on the imports of the coal will continue to persist as the latest Union Budget remained silent on the issue of eliminating the extant 2.5% import duty on the coal imports.
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